Exhibit 12.1
First Midwest Bancorp, Inc.
Ratio of Earnings to Fixed Charges (1)
(Dollar amounts in thousands)
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| Six Months Ended |
| Years Ended December 31, |
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| 2016 |
| 2015 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
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Ratio 1 - Including Interest on Deposits |
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Earnings available for fixed charges: |
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Net income (loss) from continuing operations |
| $ | 43,229 |
| $ | 42,456 |
| $ | 82,064 |
| $ | 69,306 |
| $ | 79,306 |
| $ | (21,054 | ) | $ | 36,563 |
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Add: |
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Income tax expense (benefit) |
| 21,593 |
| 19,657 |
| 37,747 |
| 31,170 |
| 48,715 |
| (28,882 | ) | 4,508 |
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Fixed charges |
| 14,581 |
| 12,476 |
| 26,275 |
| 24,405 |
| 28,134 |
| 36,011 |
| 40,936 |
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Total earnings available for fixed charges |
| $ | 79,403 |
| $ | 74,589 |
| $ | 146,086 |
| $ | 124,881 |
| $ | 156,155 |
| $ | (13,925 | ) | $ | 82,007 |
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Fixed charges (2): |
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Interest on deposits |
| $ | 4,866 |
| $ | 4,927 |
| $ | 9,527 |
| $ | 10,377 |
| $ | 11,901 |
| $ | 18,052 |
| $ | 27,256 |
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Interest on borrowed funds |
| 2,815 |
| 136 |
| 2,314 |
| 573 |
| 1,607 |
| 2,009 |
| 2,743 |
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Interest on senior and subordinated debt |
| 5,721 |
| 6,278 |
| 12,545 |
| 12,062 |
| 13,607 |
| 14,840 |
| 9,892 |
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Total interest expense |
| 13,402 |
| 11,341 |
| 24,386 |
| 23,012 |
| 27,115 |
| 34,901 |
| 39,891 |
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Portion of rental expense representative of interest factor |
| 1,179 |
| 1,135 |
| 1,889 |
| 1,393 |
| 1,019 |
| 1,110 |
| 1,045 |
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Total fixed charges |
| 14,581 |
| 12,476 |
| 26,275 |
| 24,405 |
| 28,134 |
| 36,011 |
| 40,936 |
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Preference security dividend (3) |
| — |
| — |
| — |
| — |
| — |
| — |
| 12,105 |
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Total fixed charges and preferred stock dividends |
| $ | 14,581 |
| $ | 12,476 |
| $ | 26,275 |
| $ | 24,405 |
| $ | 28,134 |
| $ | 36,011 |
| $ | 53,041 |
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Ratio of earnings to fixed charges |
| 5.45 | x | 5.98 | x | 5.56 | x | 5.12 | x | 5.55 | x | (0.39 | )x | 2.00 | x | |||||||
Ratio of earnings to combined fixed charges and preferred stock dividends |
| 5.45 | x | 5.98 | x | 5.56 | x | 5.12 | x | 5.55 | x | (0.39 | )x | 1.55 | x | |||||||
Ratio 2 - Excluding Interest on Deposits |
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Earnings available for fixed charges: |
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Net income (loss) from continuing operations |
| $ | 43,229 |
| $ | 42,456 |
| $ | 82,064 |
| $ | 69,306 |
| $ | 79,306 |
| $ | (21,054 | ) | $ | 36,563 |
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Add: |
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Income tax expense (benefit) |
| 21,593 |
| 19,657 |
| 37,747 |
| 31,170 |
| 48,715 |
| (28,882 | ) | 4,508 |
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Fixed charges |
| 14,581 |
| 12,476 |
| 16,748 |
| 14,028 |
| 16,233 |
| 17,959 |
| 13,680 |
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Total earnings available for fixed charges |
| $ | 79,403 |
| $ | 74,589 |
| $ | 136,559 |
| $ | 114,504 |
| $ | 144,254 |
| $ | (31,977 | ) | $ | 54,751 |
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Fixed charges (2): |
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Interest on borrowed funds |
| $ | 2,815 |
| $ | 136 |
| $ | 2,314 |
| $ | 573 |
| $ | 1,607 |
| $ | 2,009 |
| $ | 2,743 |
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Interest on senior and subordinated debt |
| 5,721 |
| 6,278 |
| 12,545 |
| 12,062 |
| 13,607 |
| 14,840 |
| 9,892 |
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Portion of rental expense representative of interest factor |
| 1,179 |
| 1,135 |
| 1,889 |
| 1,393 |
| 1,019 |
| 1,110 |
| 1,045 |
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Total fixed charges |
| 9,715 |
| 7,549 |
| 16,748 |
| 14,028 |
| 16,233 |
| 17,959 |
| 13,680 |
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Preference security dividend (3) |
| — |
| — |
| — |
| — |
| — |
| — |
| 12,105 |
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Total fixed charges and preferred stock dividends |
| $ | 9,715 |
| $ | 7,549 |
| $ | 16,748 |
| $ | 14,028 |
| $ | 16,233 |
| $ | 17,959 |
| $ | 25,785 |
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Ratio of earnings to fixed charges |
| 8.17 | x | 9.88 | x | 8.15 | x | 8.16 | x | 8.89 | x | (1.78 | )x | 4.00 | x | |||||||
Ratio of earnings to combined fixed charges and preferred stock dividends |
| 8.17 | x | 9.88 | x | 8.15 | x | 8.16 | x | 8.89 | x | (1.78 | )x | 2.12 | x |
(1) The ratio of earnings to fixed charges represents the number of times “fixed charges” are covered by “earnings.”
(2) “Fixed charges” consist of interest on outstanding debt plus one-third (the proportion deemed representative of the interest factor) of operating lease expense.
(3) This is computed as the amount of the preferred dividend divided by (1 minus the effective income tax rate applicable to continuing operations).